Extending capabilities through contract manufacturing

Traditionally, companies turn to contract manufacturing to fill production needs which they can not fill themselves. In many cases, the needs are urgent, driven by existing capacity constraints, fluctuating volume requirements or lack of internal capabilities. The move to contract manufacturing has also been forced by the high costs and inefficiencies of vertical integration. Evaluation of contract manufacturers in this scenario typically centers around metrics such as price and availability. Unfortunately, this approach fails to capture the full range of benefits which contract manufacturers can deliver to forward-thinking organizations which are focused on achieving competitive advantage.< >